An evaluation of leadership characteristics required to meet the demands of a strategic change process in the automative cluster in the Eastern Cape region

Against a backdrop of increasing globalisation, deregulation, the rapid pace of technological innovation, a growing knowledge workforce, and shifting social and demographic trends, the primary task of management today is the leadership of organisational change (Graetz, 2000:550). In the words of Lussier and Achua Abstract v (2001:9): “The companies that will survive in the new global competitiveness environment are those that can attract and maintain leaders”. The above emphasises the important role of managers during times when change take place in the organisation. Yet employees are often managed inappropriately in a period of change. There are two reasons for this: (1) managers managing change are under pressure which undermines their own performance, (2) organisations often do not possess managers who are skilful at handling change. It is this second reason that will form the focus of this study. Carnall (1999:105) states that managing change effectively requires an understanding of both what is and seems likely to happen and of how people react to change, and a skilful management performance. Leaders must take on more facilitative roles, as competencies in change management become critical to creating and sustaining effective organisations. The major technological advances of today rely heavily on leaders to facilitate change. Leaders need to encourage people to “collaborate, take risks, take responsibility and be accountable for the change process the organisation must continually undergo to maintain a leadership position in its industry”, according to Moran and Brightman (2000:3). They furthermore argue that “change leaders recognise that they are always trying to balance stability and change. It is a delicate balance to accomplish since employees desire order and stability, while organisations must be ready to adapt to changing conditions quickly”. In this rapidly changing world, organisations must become more flexible, more responsive, and more willing to change and adapt. They must create and assimilate new knowledge at an increasing pace, encourage innovation, and learn to compete in new ways. Dess and Picken (2000:30) argue that the leaders of these organisations must be proactive in facilitating organisational learning and encouraging positive adaptation to external changes. The above shows what an important role leaders/managers have to play in the strategic change process. They need to possess the requisite skills in leadership, problem solving, continuous improvement, team effectiveness, and customer service in order to ensure the long-term growth and stability in the organisation which change can bring about. This research project will identify the various skills needed to successfully manage a change initiativ